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Bitcoin’s price has struggled to hold above $72,000, coinciding with a sharp decline in aggregate BTC futures open interest to $34 billion, its lowest level since late 2024. While this drop appears alarming at first glance, the metric measured in Bitcoin terms remains largely unchanged, indicating that leverage demand has not materially weakened. A significant portion of the decline is attributed to forced liquidations totalling $5.2 billion, rather than a broad retreat by traders. Despite Bitcoin’s 28% monthly decline, trading activity in BTC-denominated contracts suggests participation remains steady.
Market sentiment has nevertheless turned cautious as Bitcoin continues to decouple from traditional markets. Gold has strengthened and the S&P 500 remains near record highs, while weak US labor data from the US Labor Department has intensified macroeconomic concerns. Although the White House has downplayed the slowdown, derivatives indicators such as subdued futures funding rates and a strongly bearish options delta skew on Deribit reveal growing defensive positioning among professional traders. At the same time, robust trading volumes in US-listed Bitcoin ETFs challenge the narrative of fading institutional interest, leaving Bitcoin’s near-term recovery closely tied to clearer signals on economic conditions and Federal Reserve policy expectations. Source
The Joint Chiefs of Global Tax Enforcement issued advisories warning that crypto over-the-counter trading desks and payment processors are increasingly being used to obscure illicit financial flows. The group, comprising tax authorities from Australia, Canada, the Netherlands, the United States, and the United Kingdom, highlighted that OTC desks process average daily volumes of roughly $1.44 billion, vastly exceeding estimated exchange volumes. Authorities have linked nearly $236 billion in suspicious activity to such platforms, arguing that their ability to facilitate large transactions with greater anonymity creates opportunities for tax evasion and money laundering. At the same time, suspicious activity reports involving cryptocurrency payment processors surged more than 1,000% between 2020 and 2024, with filings totalling $5 billion.
Regulators expressed concern that OTC desks are often not clearly labelled in commercial blockchain monitoring tools, limiting real-time oversight and potentially allowing criminal actors to move funds into traditional finance. The advisory also pointed to the growing acceptance of cryptocurrency payments for luxury goods, which may attract illicit actors seeking to off-ramp digital assets. Governments have begun tightening controls, including past U.S. enforcement actions and Hong Kong’s introduction of a formal licencing regime for OTC desks following the fallout from the JPEX collapse. Industry participants maintain that compliance standards such as KYC, AML procedures, and blockchain surveillance are widely employed, emphasising cooperation with authorities to identify and freeze suspicious transactions. Source
Bitcoin has recorded $2.3 billion in seven-day average realised net losses, marking one of the largest capitulation events in its history. According to CryptoQuant analyst IT Tech, the scale of losses ranks among the top few drawdowns ever observed, comparable to major market shocks such as the 2021 crash and the Luna/FTX collapse. The sell-off was largely driven by short-term holders exiting positions at steep losses as Bitcoin declined nearly 50% from its previous all-time high above $126,000 to trade near $66,000, after briefly rebounding from a recent low around $60,000.
While previous spikes in realised losses have often preceded rebounds, analysts caution that relief rallies can occur even during prolonged bearish phases. CryptoQuant data highlights $55,000 as Bitcoin’s realised price, a level historically associated with bear market bottoms, though past cycles saw prices fall significantly below this threshold before stabilising. Market observers suggest that reaching a definitive bottom may require further time and confirmation from broader indicators such as renewed institutional demand or miner stabilisation, with projected support zones ranging between $40,000 and $60,000 depending on market conditions. Source
The American Bankers Association has urged the Office of the Comptroller of the Currency to delay approving new national trust bank charters for crypto and stablecoin firms until regulatory obligations under the Guiding and Establishing National Innovation for US Stablecoins Act are fully defined. In its comment letter, the association warned that digital asset-focused national trusts operate within an unsettled framework shaped by overlapping federal and state oversight, creating unresolved safety, operational and resolution risks. Particular concerns were raised about customer asset segregation, conflicts of interest and cybersecurity vulnerabilities at uninsured entities.
The association also cautioned that national trust charters could be used to sidestep scrutiny from agencies such as the Securities and Exchange Commission or the Commodity Futures Trading Commission when firms conduct activities resembling securities or derivatives businesses. The appeal follows recent conditional approvals granted to several crypto firms to custody digital assets under federal charters while remaining outside traditional deposit and lending functions. Alongside its OCC lobbying, the banking group is pressing lawmakers to tighten market structure rules, including limiting stablecoin rewards programs that could replicate bank-like products without equivalent regulatory safeguards. Source
Coinbase reported weaker fourth-quarter results, posting revenue of $1.78 billion, a 22% decline from the previous year and below analyst expectations. The company recorded a net loss of $667 million, largely driven by a $718 million drop in the value of its investment portfolio, along with additional losses tied to strategic investments. Transaction revenue also softened, reflecting reduced trading activity amid a broader retreat in Bitcoin and crypto prices. Coinbase’s stock experienced notable volatility and has fallen sharply over recent months as market conditions weighed on investor sentiment.
Despite the downturn, Coinbase emphasised its strong balance sheet, citing $11.3 billion in cash and cash equivalents to weather market cycles. The company pointed to growing revenue from stablecoins, subscriptions, and blockchain rewards as evidence of diversification efforts designed to reduce reliance on trading fees. It also highlighted momentum in derivatives trading following its Deribit acquisition and continued investment in Base, its Ethereum layer-2 network, which the firm views as central to its long-term tokenization strategy. Early indicators suggested customer activity remained resilient, with users continuing to buy during the market dip. Source
The UK government has selected HSBC Orion to support the Digital Gilt Instrument (DIGIT) pilot, a program designed to test blockchain-based issuance of short-dated government bonds. Spearheaded by HM Treasury, the initiative aims to explore how distributed ledger technology can improve efficiency, reduce costs, and strengthen security within sovereign debt markets. The digitally native bonds will operate inside the Digital Securities Sandbox with onchain settlement, while remaining separate from the government’s primary debt issuance activities.
HSBC Orion, launched in 2023, has already facilitated at least $3.5 billion in digital bond issuances globally, including projects involving the European Investment Bank and the Hong Kong government. Officials framed the DIGIT pilot as part of a broader push to modernise UK capital markets infrastructure and attract investment. Alongside HSBC, the government appointed Ashurst to provide legal support, reflecting the regulatory and structural considerations tied to tokenized securities. Source
Securitize is launching a new real-world asset-backed stablecoin in partnership with Hamilton Lane, OKX Ventures and stablecoin infrastructure provider STBL, extending efforts to connect institutional private credit with blockchain-based financial systems. The stablecoin will be issued on OKX’s X Layer network and backed by tokenized exposure to Hamilton Lane’s Senior Credit Opportunities Fund through a feeder structure arranged by Securitize. The initiative is positioned as part of a broader push to combine regulated tokenization, programmable settlement and institutional-grade liquidity.
The product adopts a dual-token architecture that separates yield generation from the stablecoin itself, reflecting growing regulatory scrutiny in the United States around yield-bearing stablecoins. Under the framework, returns accumulate at the collateral layer rather than being distributed directly to stablecoin holders, aiming to align with emerging regulatory expectations that distinguish payment instruments from investment products. The structure is designed to address potential restrictions on passive yield while still enabling access to private credit returns. Source
Markethive is presented as a comprehensive digital ecosystem that combines social networking, blogging, marketing automation, and content distribution into a single blockchain-powered platform. It emphasises deep linking dynamics, integrated community structures, and unlimited interconnected WordPress blogs, allowing users to create, manage, and syndicate content across a broad network of domains, news sites, and API-connected media channels. The platform positions itself as more than a traditional social network by offering tools designed to expand visibility, enhance engagement, and accelerate content reach through data aggregation and clustering technologies.
The system highlights advanced analytics and visualisation features that enable users to monitor traffic, engagement, and performance across capture pages, blogs, groups, and external integrations. Markethive also promotes an income-generation model tied to user activity, including rewards distributed through Hivecoin and participation-based programs. Built on blockchain principles, the platform underscores transparency, privacy, and user empowerment, framing itself as a long-evolving “market network” designed to support entrepreneurs, creators, and digital marketers seeking greater control over their data, audience reach, and monetisation strategies. Source
SEC Chair Paul Atkins told the Senate Banking Committee that the agency may soon assert authority over parts of the rapidly growing prediction market sector. He explained that certain prediction market products could qualify as securities depending on how they are structured and worded, emphasising that existing securities laws may already provide sufficient authority without the need for new legislation. Atkins highlighted the possibility of overlapping jurisdiction between the SEC and the CFTC, noting that prediction markets represent a significant regulatory issue the agency is actively evaluating.
Prediction markets, which allow users to wager on outcomes ranging from elections and sports to cryptocurrency and stock prices, have expanded dramatically, growing into a multibillion-dollar industry within just a few years. While the CFTC has largely taken a hands-off approach that relies on platform self-regulation, this regulatory posture has recently faced challenges from state authorities arguing that many event contracts resemble unlicensed sports betting. Atkins’ comments suggest the SEC could become more directly involved, particularly where prediction products resemble traditional securities derivatives, potentially reshaping oversight of the sector. Source
The Commodity Futures Trading Commission expanded its Innovation Advisory Committee by appointing senior executives from across the cryptocurrency, finance, and trading industries, drawing major digital-asset firms into its advisory framework as Congress continues debating crypto regulation. The panel now includes leaders from companies such as Coinbase, alongside traditional financial institutions and market operators. Chairman Michael S. Selig said the committee is intended to help the agency adapt its rules to emerging technologies like blockchain and artificial intelligence, emphasising the need to modernise oversight as financial markets evolve.
The appointments arrive amid ongoing legislative disputes over the CLARITY Act, which seeks to define when digital assets fall under securities or commodities regulation. Although lawmakers broadly agree on dividing responsibilities between regulators, disagreements persist regarding the bill’s treatment of stablecoins, particularly whether issuers should be allowed to offer yield on dollar-pegged tokens. Coinbase CEO Brian Armstrong’s addition to the committee comes shortly after he withdrew support for the legislation, arguing that certain provisions could restrict innovation, limit stablecoin rewards, and weaken the CFTC’s authority relative to the SEC. Source
The Decibel Foundation is set to launch a protocol-native stablecoin, USDCBL, ahead of the February mainnet debut of its Aptos-based decentralised derivatives exchange. The dollar-backed token will serve as collateral for onchain perpetual futures, with reserves held in cash and short-term U.S. Treasurys generating yield that remains within the protocol. Users will convert USDC into USDCBL through Bridge’s Open Issuance platform, allowing the exchange to internalise reserve-related economics and reduce reliance on third-party stablecoin providers. Decibel emphasised that USDCBL is core infrastructure for its exchange, not a standalone retail token, aiming to reinvest reserve income into platform development and ecosystem growth.
The move reflects a broader trend of ecosystem-aligned stablecoins in both crypto and traditional finance, where platforms issue tokens tailored for internal use rather than relying on external issuers. Similar initiatives include Hyperliquid’s USDH for collateral on its Ethereum-compatible derivatives exchange, JPMorgan Chase’s JPM Coin for institutional blockchain settlements, and PayPal’s PYUSD integrated into its payments system with added rewards programs. These ecosystem-native stablecoins allow platforms to capture transaction and reserve value internally, providing more control over liquidity, settlement, and incentives while supporting network-specific financial activities. Source
A Federal Reserve working paper proposes treating cryptocurrencies as a distinct asset class for calculating initial margin requirements in uncleared derivatives markets, including over-the-counter trades. Traditional risk models, such as the Standardized Initial Margin Model (SIMM), do not adequately capture crypto’s high volatility or unique market behaviour, prompting the Fed authors to suggest separate risk weightings for both “floating” digital assets like Bitcoin, Ether, and Dogecoin, and “pegged” stablecoins. They also recommend a benchmark index combining equal parts of floating and pegged crypto as a proxy for market volatility, which could inform calibrated risk weights for collateral requirements and better protect against counterparty defaults.
Initial margin requirements ensure traders post collateral to mitigate liquidation risks, and crypto’s volatility necessitates higher margins than traditional assets. The proposal signals growing recognition of crypto as a maturing asset class and reflects the Fed’s efforts to prepare regulatory frameworks for its integration into financial markets. This aligns with recent policy shifts allowing U.S. banks to engage more directly with crypto, including proposals for “skinny” master accounts that provide limited access to the central banking system, further bridging traditional finance and digital assets. Source
U.S. authorities are cautioning that Valentine’s Day has become a peak period for romance scams increasingly tied to cryptocurrency fraud and organised crime networks. Scammers often exploit online relationships to extract money, steering victims toward crypto payments and fake investment schemes after building trust over weeks or months. These scams frequently overlap with “pig-butchering” schemes, long-form frauds that combine emotional manipulation with fake crypto platforms. Red flags include requests to move conversations to encrypted messaging apps, early declarations of love, refusal to meet in person, and demands for payment via crypto, gift cards, or wire transfers. Analysts note that these schemes are especially insidious because they exploit both emotional and financial vulnerabilities, gradually drawing victims into high-value losses.
The scams are often run by Southeast Asian organised crime networks laundering stolen crypto through complex channels, sometimes involving trafficked labor and multibillion-dollar operations. Tactics include allowing small initial withdrawals to entice larger deposits before blocking access with fabricated fees or technical issues. High-profile cases, such as the U.S. Justice Department’s $225 million Tether forfeiture and large-scale scams in Myanmar and Cambodia, illustrate the global scale and sophistication of these operations. Experts urge thorough research of any crypto platform, checking for licencing, regulation, and independent reviews, and caution against trusting claims made by strangers online. Source
21Shares has expanded its partnership with BitGo to enhance regulated custody and staking services for its cryptocurrency exchange-traded products in the United States and Europe. The collaboration provides 21Shares with qualified custody, trading, execution, and integrated staking infrastructure for both its US exchange-traded funds and global ETPs, along with access to liquidity across electronic and over-the-counter markets. BitGo will deliver these services through its regulated entities, including a federally chartered trust bank in the US and MiCA-licensed operations in Germany, strengthening institutional support for 21Shares’ multibillion-dollar digital asset platform.
The move reflects a broader trend of institutional platforms embedding staking into core custody offerings to meet growing investor demand for yield-generating crypto infrastructure. Recent initiatives by companies like Coinbase, Anchorage Digital, and Ripple illustrate the push to integrate staking and liquid staking solutions, allowing investors to earn rewards while maintaining asset liquidity. This trend includes liquid staking tokens such as JitoSOL on Solana, enabling clients to earn staking and MEV rewards while keeping assets available for collateral use. The partnership positions 21Shares and BitGo at the forefront of regulated staking and custody services for institutional crypto investors. Source
Ether is showing signs of building a base for a potential rally toward $2,400 despite recent weakness in its price, which has struggled to stay above $2,000. Institutional interest remains strong, with US-listed Ether exchange-traded funds attracting $71 million in inflows and stabilising assets under management at $13 billion. Daily trading volumes for these ETFs average over $1.65 billion, providing liquidity for large hedge funds to participate. At the same time, Ethereum’s network activity is increasing, with weekly decentralised exchange volumes doubling to $20 billion, narrowing the revenue gap with rival Solana and indicating rising demand for Ethereum decentralised applications.
Although ETH derivatives markets show moderate resilience, bullish leverage remains limited, with the two-month futures basis rate stabilising at 3%, below the 5% neutral threshold. Ethereum’s Total Value Locked has declined to $54.2 billion from $71.2 billion a month ago, highlighting reduced deposits and lower chain fees, which impact staking yields and network burn. However, growing DApp activity and ETF inflows suggest renewed investor confidence may support a near-term price recovery. The combination of rising institutional participation and on-chain metrics points to the possibility of Ether regaining momentum toward $2,400. Source
Fiserv has launched INDX, a 24/7/365 real-time cash settlement platform designed for digital asset companies to move US dollars instantly using a single custodial account. The system aims to reduce reliance on traditional banking rails that operate only during business hours and improve liquidity management for exchanges, trading desks, stablecoin issuers, and other crypto businesses. INDX will be available to more than 1,100 insured financial institutions in the Fiserv Deposit Network, offering up to $25 million in FDIC coverage, and mirrors the functionality of blockchain-based settlement while remaining offchain.
The platform represents a convergence of traditional finance and digital assets, providing institutional clients with familiar banking frameworks combined with continuous-dollar liquidity. By enabling real-time settlement, Fiserv positions itself ahead of legacy banking partners that still rely on batch processing for US dollar transfers, offering operational advantages to crypto infrastructure providers. The move complements Fiserv’s prior initiatives in stablecoins and cash management, and reflects a broader trend among financial technology firms, such as Sygnum and Fireblocks, to integrate always-on settlement systems for fiat and digital assets. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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